Cellular Dynamics to be acquired for $307 million by Fujifilm

Freeman Staff

March 30, 2015

MADISON — Human cell manufacturer Cellular Dynamics International, Inc. announced Monday that it will be acquired by Japanese corporation Fujifilm Holdings for $307 million in an all-cash purchase.

According to the announcement, Fujifilm plans to acquire all issued and outstanding shares of CDI’s common stock for $16.5 per share or approximately $ 307 million (on a fully diluted basis). The offer represents a premium of 108 percent to CDI’s closing price on March 27. After the purchase, Fujifilm plans to continue operating Cellular Dynamics out of its Madison and Novato, Calif. Locations. The announced transaction was unanimously approved by the Boards of Directors of both companies.

Cellular Dynamics International, a developer and manufacturer of fully functioning human cells in industrial quantities to precise specifications, reported an increase in revenue of 57 percent during the fourth quarter of 2014.

CDI was founded in 2004 and listed on NASDAQ in July 2013. The company had global revenues of $16.7 million in 2014 and had 155 employees as of Dec. 31. According to the announcement, the acquisition is anticipated to be completed during the second quarter of 2015.

The acquisition of CDI by Fujifilm will allow the Japanese company to gain entry into the area of iPS cell-based drug discovery support services, according to the announcement.

“CDI has become a leader in the development and manufacture of fully functioning human cells in industrial quantities to precise specifications. CDI and Fujifilm share a common strategic vision for achieving leadership in the field of regenerative medicine,” said Robert J. Palay, chairman and CEO of CDI, in a statement. “The combination of CDI’s technology with Fujifilm’s technologies, know-how, and resources brings us ever closer to realizing the promise of discovering better, safer medicines and developing new cell therapies based on iPSCs.”